In business you’re playing profits and losses. Most agents are focused on top line revenue, but in this Growth, Leadership and Management Tip I’m here to show you why you don’t neglect the balance sheet if you want to build profits and saleability.
It’s really all about comparing revenue minus expenses. I’ll show you how balance sheets differ between a small business and a publicly traded company, and where profit and loss statements are massively important.
I’ll explain why spreading the percentage of recurring revenue from a particular writer across the sales team reduces risk. Then I’ll break down the balance sheet and show you why it’s your assets and liabilities that show you what’s ultimately won or lost.
It’s important to buy and sell for your own firm as well as your clients. I’ll tell you about buying freeholds and how to use them as assets. Again, don’t neglect the balance sheet. Understand the importance of building significant assets for extreme profits.